Refer to the payoff matrix below. If each cell has a probability of occurrence of 0.25, what are Camp with Us' expected profits?
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) $8.50
B) $4.25
C) $5.75
D) $7.25
B) $4.25
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International trade arises from
A) absolute advantage. B) comparative advantage. C) importation duties. D) the advantage of execution.
Would you expect a tax on cigarettes to be more effective at discouraging consumption over the long run or the short run?
A. Long run because demand becomes more elastic over time B. Long run because demand becomes less elastic over time C. Short run because demand becomes more elastic over time D. Short run because demand becomes less elastic over time
Market economies are based on private enterprise, which means
a. there is no private property. b. private companies control the government. c. economic decision-making happens through markets. d. all property is private.
Which of the following explains why big business typically spends more on rent-seeking activities than consumers?
A. Lobbying is a public good to consumers. B. Lobbying is a public good to businesses and labor unions in the involved firms. C. Labor unions in the involved firms. D. Lobbying is a public good to businesses.